KUALA LUMPUR: Malaysian Bulk Carriers Bhd (Maybulk) slipped into the red for the quarter ended Sept 30, 2014 (3Q14). The carrier posted a net loss of RM2.97 million, compared to a net profit of RM8.54 million in the previous corresponding quarter.

The net loss came despite revenue increased marginally to RM62.98 million, from RM62.82 million, due to weaker financials across its business segments.

Also, voyage expenses in the quarter rose by 34.5% year-on-year, while operating expenses rose 8.7%, both at a larger margin than the increase in revenue.

This is the first quarterly loss reported for its financial year ending Dec 31, 2014.

For the nine months ended Sept 30, 2014 (9M14), Maybulk posted a net profit of RM33.94 million, up 10.8% from RM30.65 million in the previous corresponding period, which the company attributed to “steady contribution from our associate PACC Offshore Services Holdings Ltd and gain on disposal of vessel helped bring about the improved results”.

Revenue for the 9M14 came in 3.9% higher at RM196.16 million, compared with RM188.93 million in 9M13.

Maybulk said in its 3Q14 notes to accounts that its dry bulk segment, which is its major contributing segment to revenue, recorded a one-off gain on disposal of vessel of RM16.15 million.

“On a like comparative basis (without the one-off gain), the bulk segment reported a loss of RM23.4 million compared against a loss of RM19.3 million in the same period last year, mainly due to the continuing weak dry bulk market,” it noted, adding that overall average charter rates remained at about the similar levels as in the comparative period last year.

Meanwhile, the tanker segment reported a higher loss of RM380,000 – compared with RM308,000 – due to increased operating costs and docking of vessels, notwithstanding an improvement in charter rates, Maybulk said.

The ship brokerage and management segment’s profit declined to RM1.59 million, from RM1.75 million, due to higher administrative cost.

Contribution from Singapore-listed PAC Offshore Services Holdings Ltd (POSH) also declined 4% year-on-year to RM43.5 million, from RM45.45 million.

On prospects, Maybulk said whilst POSH may also be facing its own industry challenges, however, it noted that the associate has now secured equity and operational control over all its Mexican operations and assets is positive.

"It will enable POSH to actively deploy vessels which were previously off hired due to fraud investigations on Oceanografía, S.A. de C.V. The redeployment of such vessels will contribute towards better vessel utilization and earnings," it added.

Thus, whilst  the difficulties and challenges facing the shipping industry remain,Maybulk said it is of the view that the positive contribution from POSH will underpin the group’s profitability in 2014.

Maybulk closed unchanged at RM1.40 today, giving it a market capitalization of RM1.4 billion.